Simpler BAS – Who is eligible and what’s the change?

The ATO is reducing the amount of information needed to be included in the Business Activity Statement (or BAS) to simplify GST reporting. From 1 July 2017, simpler BAS will be the default GST reporting method for small business entities with a GST turnover of less than $10 million.

If you are a small business, you will only need to report:

Total Sales (G1)

GST on Sales (1A)

GST on Purchases (1B)

The following GST information will no longer be required:

Export Sales (G2)

GST-Free Sales (G3)

Capital Purchases (G10)

Non-Capital Purchases (G11)

Simpler BAS does not affect how other taxes are reported (e.g. PAYG Income Tax Instalments or PAYG Tax Withheld), or your record keeping requirements. The GST cycle you report on (monthly, quarterly or annual) is also not affected by Simpler BAS. So if you have reported GST annually in the past, you will continue to report annually after 1 July 2017.

The ATO will automatically transition eligible small business’ GST reporting methods to Simpler BAS from 1 July 2017. However, if your estimated annual GST turnover is $10 million or more, you will be required to continue to use the full reporting method.

Small businesses can choose whether to change their GST accounting software settings to reduce the number of GST tax classification codes. Please call our office if you need help with the transition to Simpler BAS or in deciding whether your business will use reduced or detailed GST tax code settings in its GST accounting software.